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There seems to be a bug in the BT5 r3 kernel, i915 module and Ivy Bridge Technology (Intel 3rd Gen). The fix is as stated by tr00ner: install the Kernel version: 3.2.15, not another one, it has to be that version. Then just set (enable framebuffer) module i915.modeset=1 or nomodset in case modeset=1 does not do the work..Once it works, make it permanent.

If you do not do that, Video driver will fallback to fb....

The rest is for power savings..You can omit them if you want.

By the way, the other fix is again as stated by Tr00ner: install Kali linux...As I stated in my post, it has a Kernel version 3.7 (very high) so it will load i915 without hassels..It should work out of the box.